2025-12-29 03:30:12

Japan's debt game is on the brink of collapse.

In the past, this system could hold up, relying on one core principle: economic growth rates have consistently exceeded government bond yields. But now, the rules have completely changed.

The central bank now directly absorbs 60% to 80% of new government bond issuance, forcibly suppressing yields from rising. It seems like a stabilizer, but in reality, it's an unsolvable trap.

If they loosen, yields will spike immediately, forcing a halt to bond purchases, and the bond market will instantly lose its support. Continuing to hold on tightly, the yen faces immense depreciation pressure, and the central bank's balance sheet inflates like a balloon, increasing systemic risks. Between a rock and a hard place, the central bank has no other options left. The evolution of this macroeconomic situation has a significant impact on the crypto market.

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pumpamentalist

· 12h ago

The Bank of Japan's move is truly brilliant. It seems stable, but in fact, it's just gambling on the fate of the country. If you ask me, it will eventually blow up. The central bank is trapped by its own tactics. Relaxing will cause a collapse, continuing to hold will lead to inflation and yen depreciation—that's a dead end. To put it simply, all global central banks are playing this game, Japan is just the most obvious example. Will crypto be the next to take over... People are still watching the stock and bond markets, but what we should be paying attention to is when this line will break. The story of Japan ends here; in fact, this is the final script for all fiat currencies. It's nothing new; central banks around the world are doing the same. It all depends on who can hold out the longest. Once this situation breaks, where will the funds escape to? Crypto will usher in a real big reshuffle. The Bank of Japan is caught between a rock and a hard place, ultimately betting—betting that the market believes it can sustain this illusion. When the debt spiral gets out of control, it can't be stopped. Japan is the living textbook. The central bank's balance sheet inflated into a balloon will eventually burst. The value of crypto assets will emerge at that moment.

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CountdownToBroke

· 12h ago

The Bank of Japan's moves are truly self-imposed constraints, feeling trapped with no way out The central bank backing government bonds appears stable on the surface but is actually a ticking time bomb, destined to explode If the yen crashes this time, cryptocurrencies might seize the opportunity, which is interesting Systemic risks are accumulating to such an extent that it feels worse than 2008 Japan's chess game is already hopeless; it's just a matter of who concedes first The central bank's asset sheet is inflated like a balloon... it will burst sooner or later, and hot money will rush into the crypto space This is the real economic dilemma—regulatory loopholes are only widening as they are patched Once the debt trap is triggered, no country can escape; Japan serves as a warning The central bank has been hijacked, with government bond yields tightly controlled, which is essentially drinking poison to quench thirst Crypto markets should be happy; the more chaotic traditional finance becomes, the better

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LightningWallet

· 12h ago

The Bank of Japan's hand is truly out of options now. Holding 60-80% of government bonds themselves is like a ticking time bomb. Lying flat and holding cryptocurrencies, waiting for traditional finance to collapse on its own. Oh my god, this is why I went all in on Bitcoin. Once the central bank loosens its grip, yields will explode. Continuing to stubbornly hold the yen until grandma's house, it's really a dilemma. But crypto is becoming more and more attractive. Japan's situation may seem far away, but it's not far from us. Once this wave of debt crisis detonates, capital will definitely flow into crypto. It feels like the Bank of Japan is now just a balloon ready to pop at any moment. The contradictions are intensifying, and capital will inevitably seek new outlets. Crypto, get ready to take over. That's why I say traditional finance will eventually have to make way.

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BoredRiceBall

· 13h ago

The Bank of Japan is digging its own grave. After taking on 60-80% of government bonds, they thought they could achieve a one-time solution, but instead, they've trapped themselves. There's really no way out.

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